Pyne rules out support for steel sector

The federal coalition has defended its decision not to back a million-dollar assistance package for the steel industry, arguing workers would rather have no carbon tax than a bailout.

The government is still urging the opposition to back the $300 million handout, which is due to be voted on in the lower house this week along with 18 carbon tax bills.

Opposition frontbencher Christopher Pyne said any steel worker given a choice between a bailout and no carbon tax would choose the latter and that's why the coalition will not be voting for the legislation.

"We are against the carbon tax (and) this package of legislation includes the steel transformation bill" he told ABC Television on Monday.

"The only reason the government is now bleating about that bill is because once again their alliance has splintered with the Greens."

Greens MPs have previously spoken out against assistance for industry, although they say now they could be convinced otherwise.

Mr Pyne, who has denied any coalition connection to a last-minute anti-carbon tax campaign by new lobby group Manufacturing Australia, said the government would be foolish to consider passing the carbon tax an achievement.

"Quite the opposite, they promised not to introduce a carbon tax, so far from being a promise delivered, it's a promise broken," he said.

Mr Pyne is the leader of opposition business in the lower house, but said he didn't know if former leader Malcolm Turnbull was due to speak on the legislation.